An Analysis on the Competitiveness and Specialization Levels of the Countries in the Export of Wood and Articles of Wood

Abstract

The main aim of this study is to determine the export competitiveness and specialization levels of countries that export wood and wooden products. To do this. 10 countries with the highest export volume between 2010 and 2019 are determined under the HS-2007 product classification, using the"44-Wood and Articles of Wood" product group export data.The Relative Export Advantage (RXA) Index and Net Export Index (NEI) are used to measure export competitiveness. Moreover, for the product groups where countries gain competitive advantage, cross-country correlation is analyzed. With the analysis, efforts are made to determine whether there is a correlation between the countries' specialization coefficient. On the one hand, it is seen that, among 21 product groups under the 44-Wood and Articles of Wood group, Poland has a competitive advantage in the export of 16 product groups, followed by Malaysia in 13, Austria and Vietnam in 12, and Canada and Indonesia in 11, respectively. Germany and USA. on the other hand. have competitive advantages in six product groups which make them the least advantageous among all these countries. Countries that have had a competitive advantage have usually shown specialization in exports as well with respect to their own trade performance. According to they results of the correlation test, which is between specialization coefficient within a certain product group, a strong correlation and a positive relationship are found between the countries that have a competitive advantage in exports. Especially in the product groups coded 4409 (wood, including strips and friezes for parquet flooring, not assembled), 4411 (fiberboard of wood), 4415 (packing cases. boxes, crates, drums. and similar packings, of wood). and 4418 (builders' joinery and carpentry of wood), a high correlation exists between countries. To be specific. in the correlation test held for 10 countries and 21 product groups, Malaysia, matching in 40 categories with the other countries, has the greatest number of meaningful relationships. It is followed by Austria with 37 and Poland with 32. Therefore, it could be stated that this is a confirmation that these countries, in a high competition with the other countries, have a meaningful relationship in terms of specialization coefficient in the global market.